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EFX

Enerflex TSX:EFX Stock Report

Last Price

CA$6.07

Market Cap

CA$544.4m

7D

-3.0%

1Y

-27.7%

Updated

03 Jul, 2022

Data

Company Financials +
EFX fundamental analysis
Snowflake Score
Valuation4/6
Future Growth5/6
Past Performance0/6
Financial Health6/6
Dividends1/6

EFX Stock Overview

Enerflex Ltd. supplies natural gas compression, oil and gas processing, refrigeration systems, energy transition solutions, and electric power generation equipment to the oil and natural gas industry.

Rewards

Trading at 87.8% below our estimate of its fair value

Earnings are forecast to grow 70.12% per year

Risk Analysis

No risks detected for EFX from our risk checks.

Enerflex Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Enerflex
Historical stock prices
Current Share PriceCA$6.07
52 Week HighCA$11.12
52 Week LowCA$5.89
Beta1.33
1 Month Change-24.60%
3 Month Change-24.88%
1 Year Change-27.65%
3 Year Change-64.25%
5 Year Change-66.98%
Change since IPO-52.02%

Recent News & Updates

Jun 17
Is Enerflex (TSE:EFX) A Risky Investment?

Is Enerflex (TSE:EFX) A Risky Investment?

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

May 10
Enerflex (TSE:EFX) Will Pay A Dividend Of CA$0.025

Enerflex (TSE:EFX) Will Pay A Dividend Of CA$0.025

Enerflex Ltd. ( TSE:EFX ) has announced that it will pay a dividend of CA$0.025 per share on the 7th of July. The...

Shareholder Returns

EFXCA Energy ServicesCA Market
7D-3.0%2.7%-0.8%
1Y-27.7%5.3%-5.0%

Return vs Industry: EFX underperformed the Canadian Energy Services industry which returned 5.3% over the past year.

Return vs Market: EFX underperformed the Canadian Market which returned -5% over the past year.

Price Volatility

Is EFX's price volatile compared to industry and market?
EFX volatility
EFX Average Weekly Movement7.3%
Energy Services Industry Average Movement8.3%
Market Average Movement10.1%
10% most volatile stocks in CA Market17.4%
10% least volatile stocks in CA Market4.4%

Stable Share Price: EFX is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: EFX's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19802,000Marc Rossiterhttps://www.enerflex.com

Enerflex Ltd. supplies natural gas compression, oil and gas processing, refrigeration systems, energy transition solutions, and electric power generation equipment to the oil and natural gas industry. The company provides custom and standard compression packages for reciprocating and screw compressor applications; and designs, engineers, manufactures, constructs, and installs modular natural gas processing equipment, refrigeration systems, and electric power solutions, as well as engages in re-engineering, re-configuration, and re-packaging of compressors for various field applications; and modular processing equipment and waste gas systems for natural gas facilities. It also offers after-market services, parts distribution, operations and maintenance solutions, equipment optimization and maintenance programs, manufacturer warranties, exchange components, long-term service agreements, and technical services.

Enerflex Fundamentals Summary

How do Enerflex's earnings and revenue compare to its market cap?
EFX fundamental statistics
Market CapCA$544.36m
Earnings (TTM)-CA$21.83m
Revenue (TTM)CA$1.08b

0.5x

P/S Ratio

-24.9x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
EFX income statement (TTM)
RevenueCA$1.08b
Cost of RevenueCA$852.30m
Gross ProfitCA$227.72m
Other ExpensesCA$249.55m
Earnings-CA$21.83m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.24
Gross Margin21.08%
Net Profit Margin-2.02%
Debt/Equity Ratio25.3%

How did EFX perform over the long term?

See historical performance and comparison

Dividends

1.6%

Current Dividend Yield

-39%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is EFX undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for EFX?

Other financial metrics that can be useful for relative valuation.

EFX key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.7x
Enterprise Value/EBITDA6.4x
PEG Ration/a

Price to Sales Ratio vs Peers

How does EFX's PS Ratio compare to its peers?

EFX PS Ratio vs Peers
The above table shows the PS ratio for EFX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average0.5x
CEU CES Energy Solutions
0.4x5.8%CA$595.3m
TOT Total Energy Services
0.6x15.2%CA$316.2m
SCL Shawcor
0.4x4.3%CA$402.6m
STEP STEP Energy Services
0.5x17.2%CA$319.2m
EFX Enerflex
0.5x30.9%CA$544.4m

Price-To-Sales vs Peers: EFX is expensive based on its Price-To-Sales Ratio (0.5x) compared to the peer average (0.5x).


Price to Earnings Ratio vs Industry

How does EFX's PE Ratio compare vs other companies in the CA Energy Services Industry?

Price-To-Sales vs Industry: EFX is good value based on its Price-To-Sales Ratio (0.5x) compared to the Canadian Energy Services industry average (0.8x)


Price to Sales Ratio vs Fair Ratio

What is EFX's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

EFX PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.5x
Fair PS Ratio1.2x

Price-To-Sales vs Fair Ratio: EFX is good value based on its Price-To-Sales Ratio (0.5x) compared to the estimated Fair Price-To-Sales Ratio (1.2x).


Share Price vs Fair Value

What is the Fair Price of EFX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: EFX (CA$6.07) is trading below our estimate of fair value (CA$49.95)

Significantly Below Fair Value: EFX is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate EFX's PEG Ratio to determine if it is good value.


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Future Growth

How is Enerflex forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


70.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EFX is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.6%).

Earnings vs Market: EFX is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: EFX is expected to become profitable in the next 3 years.

Revenue vs Market: EFX's revenue (30.9% per year) is forecast to grow faster than the Canadian market (6.5% per year).

High Growth Revenue: EFX's revenue (30.9% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EFX's Return on Equity is forecast to be low in 3 years time (8.7%).


Discover growth companies

Past Performance

How has Enerflex performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-4.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: EFX is currently unprofitable.

Growing Profit Margin: EFX is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: EFX is unprofitable, and losses have increased over the past 5 years at a rate of 4.7% per year.

Accelerating Growth: Unable to compare EFX's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: EFX is unprofitable, making it difficult to compare its past year earnings growth to the Energy Services industry (-8%).


Return on Equity

High ROE: EFX has a negative Return on Equity (-1.63%), as it is currently unprofitable.


Discover strong past performing companies

Financial Health

How is Enerflex's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: EFX's short term assets (CA$735.1M) exceed its short term liabilities (CA$395.8M).

Long Term Liabilities: EFX's short term assets (CA$735.1M) exceed its long term liabilities (CA$489.1M).


Debt to Equity History and Analysis

Debt Level: EFX's net debt to equity ratio (15.3%) is considered satisfactory.

Reducing Debt: EFX's debt to equity ratio has reduced from 33.7% to 25.3% over the past 5 years.

Debt Coverage: EFX's debt is well covered by operating cash flow (49.5%).

Interest Coverage: EFX's interest payments on its debt are well covered by EBIT (3.4x coverage).


Balance Sheet


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Dividend

What is Enerflex current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


1.65%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: EFX's dividend (1.65%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (2.02%).

High Dividend: EFX's dividend (1.65%) is low compared to the top 25% of dividend payers in the Canadian market (5.4%).


Stability and Growth of Payments

Stable Dividend: EFX's dividend payments have been volatile in the past 10 years.

Growing Dividend: EFX's dividend payments have fallen over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: EFX is paying a dividend but the company is unprofitable.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (7.5%), EFX's dividend payments are thoroughly covered by cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure


CEO

Marc Rossiter (50 yo)

3.17yrs

Tenure

CA$4,030,384

Compensation

Mr. Marc Edward Rossiter has been the President, Chief Executive Officer and Director at Enerflex Ltd. since May 03, 2019. He is responsible for the Enerflex’s value creation and global growth strategy.Mr...


CEO Compensation Analysis

Compensation vs Market: Marc's total compensation ($USD3.12M) is above average for companies of similar size in the Canadian market ($USD1.29M).

Compensation vs Earnings: Marc's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: EFX's management team is considered experienced (2.8 years average tenure).


Board Members

Experienced Board: EFX's board of directors are considered experienced (5.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Enerflex Ltd.'s employee growth, exchange listings and data sources


Key Information

  • Name: Enerflex Ltd.
  • Ticker: EFX
  • Exchange: TSX
  • Founded: 1980
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Implied Market Cap: CA$544.363m
  • Shares outstanding: 89.68m
  • Website: https://www.enerflex.com

Number of Employees


Location

  • Enerflex Ltd.
  • 1331 Macleod Trail SE
  • Suite 904
  • Calgary
  • Alberta
  • T2G OK3
  • Canada

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/07/03 00:00
End of Day Share Price2022/06/30 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.